Mega-funds took 72% of all VC money in 2026, up from 34% last year
colossusmag · x · 2026-11-12
A new Colossus essay argues venture capital is dying (again): so far in 2026, funds over $1 billion have captured 72% of all venture money raised, versus 34% last year and just 16% a decade ago. Even famously small firms like Benchmark and Union Square Ventures have caved—Benchmark's five partners raised $425M in 2024, then $2B this June.
When money per partner gets too large, funds must either make bad deals or take on less uncertainty—the former is bad business, the latter isn't venture capital. The last comparable era was the 1980s, when money per investor tripled, median returns fell from 30%+ to 8%, and firms pivoted to buyouts and rollups; even Sequoia dabbled in LBOs, and by 1994 Marc Andreessen called Silicon Valley "dead in the water."
Related event: Mega-Funds Capture 72% of Venture Capital(2 posts)→
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